First and foremost, it’s an honor when clients think highly enough of our services to take the risk of recommending us. We say “take the risk” because, when referring any professional, there is a chance someone’s experience won’t be the same as yours.
While we take extra care with client referrals, it’s not unusual for us to recommend them to other professionals we feel might be a better match. The most common scenario of referring a prospect to another professional is when our minimum annual fee of $3,250 doesn’t represent a good value to the prospect. This can happen when income, investable portfolio, or financial planning needs are not sufficient to receive value from our services.
As an example, a 60 year-old investor, employed earning $40,000 a year, with an IRA of $50,000 would not be well served paying $3,250 for financial planning and investment advice. However, an investor with the same level of earnings and savings who is 28 years old, graduating with an advanced degree, and establishing a career, would receive excellent value paying our minimum fee.
We know it could be awkward to ask a potential referral their annual salary or net worth. Instead, mentioning our $3,250 minimum fee and no minimum net worth for clients might provide valuable insight and help them consider if our services would be a good fit. If they still aren’t sure, please know they are welcome to call us to find out more.
And as always, we want to thank those of you who have referred friends and family. It truly is the highest compliment.